Question

Where to enter rental property expenses?

Forum|Forum|3 years ago
January 7, 2023
1 reply
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I purchased a rental property in 2022 and feel confused about how to enter into TT expenses for that property. After purchasing the property I purchased new carpet, a new AC, a washer/dryer, and paid a contractor to do a number of improvements.

I've encountered three areas of TT that may be asking for these expenses: (1) in the property profile, TT asks for remodeling expenses; (2) in the common expenses section, TT asks about repairs, (3) in the assets/depreciation section, TT asks about improvements. How do I decide where to enter these expenses? And am I correct that I should not be entering anything twice (in more than one section of TT)?

Additionally, I'm wondering if I should enter the property itself as one of the assets to depreciate?

TurboTax Home & Biz Windows

Critter-3

Additionally, I'm wondering if I should enter the property itself as one of the assets to depreciate? This is a MUST not an option. You really need to do some reading to get educated on having a rental property and/or use a paid tax pro your first year to get things done correctly. https://www.irs.gov/pub/irs-pdf/p527.pdf

I've encountered three areas of TT that may be asking for these expenses: (1) in the property profile, TT asks for remodeling expenses; No it does not... read that section again. And did you ever rent the property or put it on the market for rent ?

(2) in the common expenses section, TT asks about repairs, Repairs are done once the rental is being rented.

(3) in the assets/depreciation section, TT asks about improvements. How do I decide where to enter these expenses? All expenses to buy, improve and repair the property until it is rented or available for rent MUST be capitalized and depreciated.

And am I correct that I should not be entering anything twice (in more than one section of TT)? NOTHING is ever entered twice ... just once in the correct place.